THE rising stock market has halved the deficit in the pension funds of the 100 leading UK companies, according to a survey today.

Analysts Hewitt Bacon and Woodrow estimate that the black hole in company pensions schemes dropped from £100bn to £50bn in 2003.

And they say that if the FTSE 100 stock market index climbs above 5000, then leading companies on average may find that their pension deficits have gone. But they warn that the long-term position is still fraught with risks.

The benchmark FTSE 100 Index, which many pension funds track, has been on an upward curve for several months.